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20/200 Simple Moving Average

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This indicator shows you the big trend vs the medium trend — and colors the chart so you don’t have to think too much.

Here’s what it does in simple terms:

What are the two lines?

20 SMA = the average price of the last 20 candles → short/medium-term direction.

200 SMA = the average price of the last 200 candles → long-term trend.

Think of it like:

20 = recent behavior.

200 = overall direction.

What the Background Colors Mean

🟢 Green Background
Price is ABOVE both the 20 and the 200.
That means:

Short-term trend is strong.

Long-term trend is bullish.

Market structure is healthy.

This is bullish territory.

🔴 Red Background

Price is BELOW both the 20 and the 200.

That means:

Short-term trend is weak.

Long-term trend is bearish.

Sellers are in control.

This is bearish territory.

⚪ White / No Color

Price is stuck between the two averages.

That means:

No clear trend.

Market is deciding.

Higher chance of chop.

Buy & Sell Signals (Crossovers)

Buy Territory:
When the 20 crosses ABOVE the 200 and price is already above the 200.
That’s momentum shifting bullish inside a confirmed trend.

Sell Territory:
When the 20 crosses BELOW the 200 and price is already below the 200.
That’s momentum turning bearish in a downtrend.

In very simple words:

Green = strong uptrend.
Red = strong downtrend.
White = messy middle.

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